Navy Federal cashRewards® Secured Credit Card Review: A Credit-Building Option Designed for the Military Community

The Navy Federal cashRewards® Secured Credit Card is a good choice if you’re part of the military community and want a low-cost way to build credit while earning cash back. Whether you’re new to credit or rebuilding after financial setbacks, it offers an affordable path forward. After just six months of responsible use, Navy Federal begins reviewing your account for an upgrade to the unsecured version, unlocking higher rewards without a new application or extra deposit.

If you don’t have a military connection and can’t qualify for Navy Federal membership, a secured card available to the general public like the Discover it^® Secured Credit Card or the Capital One Quicksilver Secured Cash Rewards Credit Card may be a better fit.

Annual fee: $0

Security deposit amount: $200 to $5,000

Regular purchase APR: 18.00% variable APR

Foreign transaction fee: $0

Sign-up bonus: N/A

Rewards: Earn unlimited 1% cash back on all purchases

Other benefits:

• Credit limit increase possible in three months
• Monthly reviews after six months for upgrade eligibility to an unsecured card
• Collision Damage Waiver for car rentals (secondary)

Recommended credit: Limited / Fair

• Few fees

  The Navy Federal cashRewards® Secured Credit Card keeps costs low with a $0 annual fee, $0 foreign transaction fee and $0 balance transfer fees. That means you can carry the card without worrying about extra charges, move balances at no cost and use it while traveling abroad without paying additional fees.

  Tip: Secured credit cards are often a more budget-friendly way to rebuild credit thanks to their low fees. Many unsecured credit cards for poor credit come with high or unnecessary charges.

• Chance to graduate to an unsecured credit card

  After six months, Navy Federal will start monthly reviews to determine if you qualify for an upgrade to the unsecured Navy Federal cashRewards Credit Card. If approved, your security deposit is returned automatically. Demonstrating responsible habits, like making on-time payments and staying within your credit limit, can improve your chances. Best of all, the upgrade requires no new application or credit check, so you avoid a hard inquiry and protect your credit score.

• Possibility for a credit limit increase

  After three months of responsible use, Navy Federal may review your Navy Federal cashRewards® Secured Credit Card for a possible credit limit increase. The advantage is you won’t need to add to your security deposit to qualify for the higher limit.

  Tip: A higher limit not only gives you more spending flexibility but can also help lower your credit utilization ratio, a key factor in your credit score.

• Cash back on purchases

  With the Navy Federal cashRewards® Secured Credit Card, you’ll earn unlimited 1% cash back on all purchases. Unlike many secured cards, this one allows you to earn rewards on most purchases. In fact, our secured credit card study shows that fewer than half of secured cards provide any rewards at all.

  You can redeem your cash back either by depositing it into your Navy Federal savings or checking account, or by applying it directly as a statement credit to your card.

  Tip: Rewards programs can tempt you to overspend, so make sure you can keep your spending in check if you get this card. The best way to build credit with a secured card is to use less than 30% of the card’s credit limit and pay it off on time and in full every month.

• Low APR

  A standout feature of the Navy Federal cashRewards® Secured Credit Card is its 18.00% variable APR, which is far below average for a secured card, according to LendingTree’s interest rate report. This makes it a more affordable option if you occasionally carry a balance, though paying in full each month is still the best way to avoid interest charges entirely.

  → See our picks for the best low-interest credit cards.

• Free FICO® Score tracking

  With the Navy Federal cashRewards® Secured Credit Card, you’ll get free access to your FICO® Score, making it easy to track how your credit improves over time. Having regular visibility into your score can help you stay motivated and make adjustments to your spending or payment habits when needed.

  → You can also check your credit score for free without negatively impacting your credit by using LendingTree Spring.

• Protects your car rentals

  When you use the Navy Federal cashRewards® Secured Credit Card to pay for a rental car, you’ll receive automatic collision damage waiver coverage for rentals of up to 15 days. This secondary coverage helps protect against physical damage or theft of the vehicle, and may also cover reasonable towing costs, valid loss-of-use charges from the rental company, your deductible and other eligible expenses not covered by your primary insurance. This benefit stands out, because it’s rare for secured credit cards to include extra perks like rental car coverage.

  → See our picks for the best credit cards for car rental insurance.

  When you apply for the Navy Federal cashRewards® Secured Credit Card, you can receive either a Visa or Mastercard version of the card. The perks and benefits — including the details, restrictions, and exclusions of the collision damage waiver — will vary depending on which network your card is issued under.

  Learn more about Visa vs. Mastercard.

• Exclusive benefits tailored to military members and families

  Although you must be a Navy Federal Credit Union member to apply for this card, membership itself comes with valuable advantages for military members, veterans and their families. As a member, you’ll get:

  • Competitive rates designed to save you money
  • Low fees and interest charges across accounts and loans
  • A 360° view of your finances through easy-to-use digital tools
  • Convenient banking options online, in-app and at branches worldwide
  • Access to some of the best VA loans available
  • Special offers and member discounts

• NFCU membership requires a military connection

  While Navy Federal membership comes with plenty of perks, eligibility is limited and you must be a member to apply for the Navy Federal cashRewards® Secured Credit Card. You may qualify if you’re:

  • Active duty: Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard and Space Force.
  • Veterans: Regardless of length of service.
  • Immediate family members: Spouses, siblings, parents, children, grandparents and grandchildren.
  • Department of Defense (DoD) employees

  If you don’t meet these requirements but still want a secured credit card to help build credit, you might look at the Discover it^® Secured Credit Card or Capital One Quicksilver Secured Cash Rewards Credit Card, which don’t require memberships to apply.

• $200 minimum security deposit required

  Because the Navy Federal cashRewards® Secured Credit Card is a secured credit card, you’ll need to make a refundable security deposit between $200 and $5,000, which becomes your credit limit. You’ll get this deposit back when you either close the account with no balance or when Navy Federal upgrades you to an unsecured card.

  Although secured credit cards require a deposit upfront, they’re often a smarter choice for people with poor or limited credit. They’re generally easier to qualify for and come with fewer hidden costs than many unsecured credit cards for bad credit, which often charge high annual fees, setup costs or other unnecessary charges.

  → If you prefer a card with a lower deposit requirement, the Capital One Platinum Secured Credit Card offers the chance to pay just $49, $99, or $200 for a $200 starting limit based on your credit profile.

• Modest rewards rate

  While it’s a plus that the Navy Federal cashRewards® Secured Credit Card offers the chance to earn unlimited 1% cash back on all purchases, that rate is on the lower side compared to some other secured cards. Still, having any rewards at all is a benefit, since many secured cards don’t offer them.

  If maximizing rewards is your priority, you might find better value with alternatives:

  → With Discover it^® Secured Credit Card, you can earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically.
  → With the Capital One Quicksilver Secured Cash Rewards Credit Card, you can earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels, vacation rentals and rental cars booked through Capital One Travel.

  It’s worth noting, though, that if you graduate to an unsecured Navy Federal cashRewards Credit Card, your rewards rate improves to 1.5% - 2% cash back, bringing it in line with some of the best flat-rate rewards credit cards.

Navy Federal cashRewards® Secured Credit Card vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card is a better choice for those without a military connection who want a more rewarding program. It offers higher rewards at gas stations and restaurants, along with automatic account reviews starting at seven months for a potential upgrade to an unsecured card. It also reports to all three major credit bureaus to help you build credit.

However, the card comes with a relatively high 27.24% Variable APR and a maximum credit limit of $2,500, which is lower than what the Navy Federal cashRewards® Secured Credit Card allows.

→ Explore LendingTree’s expert take on the Discover it^® Secured Credit Card.

Navy Federal cashRewards® Secured Credit Card vs. Capital One Quicksilver Secured Cash Rewards Credit Card

The Capital One Quicksilver Secured Cash Rewards Credit Card is a solid alternative to the Navy Federal cashRewards® Secured Credit Card for those who don’t qualify for Navy Federal membership and want higher flat-rate rewards. There are minimal fees, and Capital One begins reviewing accounts at six months for possible credit line increases without requiring an additional deposit.

The drawbacks are that there’s no guaranteed upgrade path to an unsecured card and the card carries a relatively high 29.74% (Variable) APR.

→ Explore LendingTree’s expert take on the Capital One Quicksilver Secured Cash Rewards Credit Card.

Navy Federal cashRewards® Secured Credit Card vs. DCU Visa® Platinum Secured Credit Card

The DCU Visa® Platinum Secured Credit Card is a better pick than the Navy Federal cashRewards® Secured Credit Card if your priority is a lower purchase APR. While Navy Federal’s rate is already competitive, DCU offers a APR, which can be especially valuable if you occasionally carry a balance.

The card has very few fees and reports to all three major credit bureaus, but membership with DCU is required, and the minimum security deposit is higher at $500.

→ Explore LendingTree’s expert take on the DCU Visa® Platinum Secured Credit Card.

The Navy Federal cashRewards® Secured Credit Card is a strong fit if you’re part of the military community and want a low-cost way to help build or rebuild credit while earning rewards. With flat-rate cash back, a $0 annual fee, no foreign transaction fees and the chance to upgrade to an unsecured card in as little as six months, it offers a practical and affordable path forward.

That said, eligibility is limited, You’ll need a military connection to join Navy Federal. If you don’t qualify, consider alternatives like the Discover it^® Secured Credit Card or Capital One Quicksilver Secured Cash Rewards Credit Card, which are open to the general public and offer competitive rewards.

We take a comprehensive, data-driven approach to identify the best credit building cards. We use an objective rating and ranking system that evaluates over 200 credit cards from more than 50 issuers. All recommendations are made by LendingTree’s editorial team, completely independent of affiliate partnerships or compensation. Every card is selected based on its merit and ability to help people achieve their financial goals. We use the following criteria to make our picks:

• Annual savings (50% of rating): We calculate how much the average cardholder can save with the card on a yearly basis. If it’s a rewards card, we use U.S. Bureau of Labor Statistics data and $300 in monthly spending (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
• Credit-building features (50% of rating): We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We take away points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.